UBS To Acquire Credit Suisse For $3.5 Billion Despite $17 Billion Write-Down

• UBS expects to lose $13 billion in fair value adjustments to assets and liabilities from acquiring Credit Suisse.
• UBS anticipates $4 billion in litigation and regulatory costs related to client outflows after the deal is completed.
• UBS will record a $34.8 billion gain from purchasing Credit Suisse at a steep discount to its book value.
• Credit Suisse faces restrictions on granting new loans and making capital expenditures during the acquisition process.
• UBS was under pressure to rescue Credit Suisse quickly, limiting its ability to fully evaluate the bank before agreeing to a takeover.

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